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Old Mutual Reports Drop In U.S. Fund Assets

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NU Online News Service, Jan. 29, 11:38 a.m. – Old Mutual P.L.C., London, says the value of assets under management at its U.S. money management operation fell 18% in 2001, to $150 billion.

Clients contributed $4.4 billion more than they took out, but investment losses cut assets by $9.6 billion, and restructuring efforts cut another $23 billion, Old Mutual says.

Old Mutual entered the U.S. asset management market in September 2000, by acquiring United Asset Management Corp., Boston, the parent company of Pilgrim Baxter & Associates and other fund companies.

Old Mutual decided in 2001 to sell nine U.S. fund units to managers and outside buyers, and to put seven others in a new unit called Old Mutual (US) Holdings.

The units that the company is keeping recorded $6.5 billion in net cash inflow for 2001. Assets under management increased 2.3%, to $77 billion, Old Mutual says.